Reciprocal Services Agreement Regarding Communication Routing Services
This Agreement is entered into as of _______________ (date) , the Effective Date ,
between Alpha , a corporation organized and existing under the laws of the state of
______________, with its principal office located at ___________________________________
______________________________________ (street address, city, state, zip code) ,
referred to herein as Alpha , and Beta, a corporation organized and existing under the laws of
the state of ______________, with its principal office located at _________________________
____________________________________________ (street address, city, state, zip code) ,
referred to herein as Beta. Alpha and Beta are sometimes referred to in this Agreement
individually as a Party and collectively as the Parties .
Whereas each Party provides enhanced and/or information routing services in and from
various destinations in the world; and
Whereas, each Party desires to purchase certain enhanced and/or information routing
services provided by the other as described herein on the terms and conditions of this
Agreement;
Now, therefore, for and in consideration of the mutual covenants contained in this
agreement, and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
1. Description of Services
A. Alpha shall provide Beta enhanced and/or information routing Services (hereafter
referred to as the Services ) as described in Schedule 2 , and Beta shall purchase such
Services subject to the terms and conditions of this Agreement. Beta shall provide Alpha
the enhanced and/or information routing Services as described in Schedule 4 , and
Alpha shall purchase such Services subject to the terms and conditions of this
Agreement. In the event that a route Alpha offers hereunder is no longer available owing
to action or inaction of Alpha or one of Alpha terminating carriers, then Alpha shall not be
obligated to continue providing such route at the previously quoted price.
B. Beta agrees to pay Alpha the Rates for provision of Services ( Rates ) to the
various destinations as set forth in Schedule 2 . Alpha agrees to pay Beta the Rates for
provision of Services to the various destinations as set forth in Schedule 4 . A Party may
change its Rates and destinations from time to time on five (5) days prior written notice,
except a shorter period may apply for certain countries such as ____________________
( Name of Country ) as designated by Alpha or Beta in advance. Acceptable methods of
notice of rate change include electronic mail and fax.
C. The Rates do not include any other call conveyance charges whatsoever,
including but not limited to inter-connect charges, universal Service charges, or any
other charges imposed by any regulatory authority. Charges other than those classified
as Rates shall be borne by the originating Party .
D. Additional Services may be added to this Agreement from time to time upon
terms and conditions to be mutually agreed by the Parties and may be included by
amending the applicable schedule. Beta expressly acknowledges that Alpha and/or
its network services supplier may block and/or its network services supplier may
block, without incurring any penalty or liability, any and all emergency services
calls (“911 Calls”) received from Beta and/or its end users, and that 911 Calls are
not intended to be carried or supported via the Services .
E. Service Distinctions: The Service is not a telecommunications service.
Important distinctions exist between telephone service and the Information/Enhanced
Service offering provided for herein. The Service is subject to different regulatory
treatment than telecommunications service. Supplier is not a telecommunications carrier
and does not provide telecommunications services. As such, Supplier is not at present
subject to the regulatory jurisdiction of any state or federal regulatory body, except to the
extent that enhanced and/or information services are subject to Title I of the Federal
Communications Act. This treatment limits and otherwise affects customer’s rights of
redress before Federal and State telecommunications regulatory agencies.
2. Fees and Invoicing
A. Invoices. Each Party may invoice the other each week on such days as a Party
may determine for Services provided covering a period of seven (7) days, or such other
frequency as mutually agreed. Invoices shall be based on the billable duration of the
calls routed and for any prior period that charges were not invoiced pursuant to this
Agreement. The invoice will specify the traffic by destination, rates by destination and
the total amount due.
B. Payment. Fees and invoice charges shall be due and payable in US dollars
within three (3) days of the date the invoice is received. Acceptable methods of
transmission include electronic mail. Amounts not paid when due shall accrue interest at
the rate of 1.5% per month or the maximum rate allowed under applicable law,
whichever is lower, and the invoicing Party may recover from the invoiced Party all costs
incurred to collect such amounts due.
C. Taxes. Rates and other charges are exclusive of applicable taxes, duties, levies
and other similar charges imposed by any authority, all of which shall be paid by the
originating Party in addition to the Rates .
D. Security Deposit . The terminating Party may require a Deposit in the form of
cash, unconditional bankers guarantee or irrevocable letter of credit in an amount set
forth in Schedule 1 or Schedule 3 (the Deposit) as security for the originating Party ‘s
payment of its obligations hereunder and due performance and observance of the terms
and obligations of this Agreement. The terminating Party reserves the right to increase
the amount of the Deposit to take into account the originating Party ’s actual usage.
E. The Deposit does not affect the originating Party ’s obligation to pay any amounts
billed by the terminating Party nor constitute a waiver of the terminating Party ’s right to
suspend, disconnect or terminate Services due to non-payment of any sums due or
payable. A Party that receives a Deposit may apply the Deposit or any part thereof to
settle any amount due and payable to it. Subject to any deductions pursuant to this
Agreement, the Party that received the Deposit shall return the Deposit without interest
within 30 days of the termination of the Agreement.
3. Operational and Commercial Matters
A. Equipment. Each Party will provide the necessary facilities to supply the
Services described in Schedules 2 and 4 at the expense of the Beta terminating the
traffic.
B. Licenses and Laws. Each Party shall obtain and maintain at its own expense all
relevant licenses, permits, waivers or whatsoever necessary to operate and provide the
Services and shall ensure that it complies with all relevant laws and obligations in
accordance with the regulatory authority and the laws of the country in which it operates.
C. Infrastructure. The Parties shall coordinate the management of their respective
infrastructures with each Party being responsible for providing and operating at its own
expense its respective infrastructure, including networks.
D. Suspension of Services . Each Party reserves the right to cancel or temporarily
suspend any or all of the Services if the other Party engages in activities which in the
Service providing Party ’s opinion may cause disruption of Service or damage to its
network or facilities. Each Party shall use commercially reasonable efforts to provide the
other Party with advance notice of such suspension and or cancellation or notice within a
commercially reasonable time thereafter if advance notice is not possible.
E. Repairs. Each Party may as required temporarily suspend its Services for the
purposes of repair, maintenance or improvement of any equipment. Where possible, a
Party shall provide eight (8) days advance written notice of such suspension.
F. Rates. Unless otherwise agreed prior to the time that traffic begins to flow to a
country, the Rates are computed in 6-second increments with a minimum of 30 seconds
per call, except Rates for calls terminated in ___________________ (Name of
Country) and other destinations specified by Alpha and/or Beta shall be computed in
one minute increments with a minimum of one minute per call.
4. Compliance
A. Each Party represents and warrants, to the best of its knowledge, that it has and
will maintain all required state and federal licenses, if any, to carry out the activities it
undertakes herein. Beta further agrees to comply with the U. S. Export Laws
concerning the transmission of technical transmission of technical data and other
regulated materials via the Internet. Beta further understands that neither Alpha
nor its network services supplier is responsible for the content of the
transmissions that may pass through the Internet and/or the Services . Beta agrees
that it will not use the Services in ways that violate laws, infringe the rights of
others, or interfere with the users, Services or equipment of the network.
B. Each Party agrees that in the event that any federal or state government or
regulatory or enforcement agency enacts any applicable law, promulgates any
applicable regulation, or notifies the other Party that it believes that Party is not in
compliance with any law or regulation governing the Services , such Party shall have the
right to terminate this Agreement upon ten (10) days prior written notice to the other
Party . In the event of such termination, the originating Party shall pay the Rates for any
Services rendered through the date of termination.
5. Regulatory Issues:
A. This Agreement is made based upon the express understanding of both Supplier
and Customer that Supplier is not a telecommunications service provider or common
carrier, and that to the extent Supplier’s Services are deemed to be telecommunications
(which Supplier denies) then Supplier is a “private carrier” and the Service is provided on
a “private carriage” basis. If any state or federal court or regulatory body determines that
Supplier is providing a Service that is subject to rate or Service regulation, then Supplier
has the sole right, in its complete discretion, to terminate or seek appropriate
amendments, including changes in price, to this Agreement on ten (10) days’ notice.
B. This Agreement is made based on the express understanding that Supplier is not
a carrier and therefore is exempt from access charges as a result of, inter alia, 47 C.F.R.
§§ 64.702(a), 69.2 and 69.5. If any state or federal court or regulatory body determines
that Supplier is providing a Service that is subject to access charges, then Supplier has
the sole right, in its complete discretion, to terminate or seek appropriate amendments,
including changes in price, to this Agreement on ten (10) days’ notice.
6. Confidential Information
A. Confidential Information means business or technical information of either Party
(including but not limited to information relating to either Party ’s product plans, designs,
costs, product prices and names, finances, marketing plans, business opportunities,
personnel, research, development or know-how) whether or not such information is
designated by either Party as “confidential” or “proprietary”.
B. Each Party agrees that it will: (a) not disclose Confidential Information to any
third Party , or use the Confidential Information disclosed to it by the other Party except
as contemplated by this Agreement; and (b) take all reasonable measures to maintain
the confidentiality of all Confidential Information of the other Party in its possession or
control, which will in no event be less than the measures it uses to maintain the
confidentiality of its own information of similar importance. Notwithstanding the
foregoing, each Party may disclose Confidential Information to its employees, affiliates
and/or contractors who have entered into a nondisclosure agreement, the terms of which
are at least as restrictive as those contained herein.
C. Confidential Information will not include information that (a) is in or enters the
public domain without breach of this Agreement; (b) the receiving Party lawfully receives
from a third Party without restriction on disclosure and without breach of a nondisclosure
obligation; (c) the receiving Party knew prior to receiving such information from the
disclosing Party ; (d) the receiving Party develops independently without use of the
disclosing Party ’s Confidential Information; or (e) is disclosed pursuant to any judicial or
governmental order or request, provided the recipient takes reasonable steps to give the
disclosing Party sufficient notice to contest such order or request.
7. Representations and Warranties
A. Each Party represents and warrants that; (a) it is a duly organized entity, validly
existing and in good standing under applicable law and it has the power and authority to
enter into and fully perform its obligations under this Agreement; (b) it has obtained and
will maintain all necessary permits, consents, authorizations, approvals, registrations,
waivers, releases, clearances or licenses of any third Party for it to perform its
obligations under this Agreement; and (c) it shall comply with all applicable laws,
statutes, regulations, orders, directions, standards and notices issued by the competent
authority which has jurisdiction over the Parties or the subject matter of this Agreement.
B. Each Party represents and warrants that all information furnished to the other,
including but not limited to the information under the credit policy checklist in Exhibit A ,
is true, accurate and complete and the Party is not aware of any material facts or
circumstances not disclosed that might, if disclosed, adversely affect the decision of the
other Party in considering whether or not to enter into this Agreement or to extend credit.
C. NEITHER PARTY (NOR ALPHA’S NETWORK SERVICES PROVIDER) MAKES ANY
WARRANTY IN CONNECTION WITH THE SUBJECT MATTER OF THIS AGREEMENT AND
EACH PARTY DISCLAIMS ANY AND ALL WARRANTIES OR CONDITIONS, EXPRESS OR
IMPLIED, IN CONNECTION WITH THE SERVICES , THE INTERNET TELEPHONY NETWORK
OR OTHER PRODUCTS OR SERVICES, INCLUDING BUT NOT LIMITED TO ANY IMPLIED
WARRANTIES OF SATISFACTORY QUALITY, MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, NONINFRINGEMENT, AVAILABILTY, AND RELIABILITY, OR
THOSE ARISING FROM A COURSE OF PERFORMANCE, COURSE OF DEALING OR
TRADE USAGE. CIT COMMUNICATIONS SPECIFICALLY MAKES NO WARRANTY WITH
RESPECT TO SOFTWARE, TECHNOLOGY, EQUIPMENT OR SERVICE (COLLECTIVELY,
SOFTWARE ) PROVIDED OR USED HEREUNDER AND DOES NOT WARRANT THAT THE
SOFTWARE OR SERVICES PROVIDED TO THE OTHER OR USED HEREUNDER IS ERROR
FREE, WILL OPERATE WITHOUT INTERRUPTION OR PROVIDE SECURE OPERATION.
8. Indemnities and Limitations of Liability
A. Each Party shall indemnify, hold harmless the other Party against any loss,
liability, fines, penalties, costs, or expense that result from any third Party claims arising
from such indemnifying Party ’s own acts, omissions or misrepresentations. A Party
indemnified under this Agreement shall give the indemnifying Party (a) prompt written
notice of any claim, (b) the right to control and direct the investigation, preparation,
defense, and settlement of the action; and (c) reasonable assistance and information.
B. Each Party shall indemnify, hold harmless, and defend the other Party against
any loss, liability, fines, penalties, cost, or expense that result from any third Party claims
arising from the indemnifying Party ’s use of or access to the Services provided
hereunder, including without limitation claims arising in connection with interruptions or
degradation of Service to an originating Party ’s customers regardless of the cause or
duration thereof. The foregoing shall not apply in the event a Party ’s gross negligence or
willful misconduct results in injury to a person.
C. Each Party recognizes that the other Party has no control over how any U.S. (or
non-U.S.) government or third Party establishes rules and conditions pertaining to
telecommunication Services . Each Party agrees that the other Party shall not be liable
for any loss or damage suffered by an originating Party , its interconnecting or end users
due to any termination, suspension, failure in or breakdown of the communication
facilities associated with providing Services hereunder and for any termination,
suspension, interruption or degradation of such Services and the duration thereof, due to
the rules and conditions pertaining to domestic or international telecommunications
Services .
D. EXCEPT FOR LIABILITY ARISING UNDER CLAUSE 6 ( CONFIDENTIALITY ),
NEITHER PARTY (NOR ALPHA’S NETWORK SERVICES SUPPLIERS) SHALL IN ANY
EVENT BE LIABLE TO THE OTHER FOR ANY DIRECT OR INDIRECT, SPECIAL,
INCIDENTAL, OR CONSEQUENTIAL DAMAGES (INCLUDING WITHOUT LIMITATION LOSS
OF DATA, PROFITS, REVENUE OR GOODWILL; BUSINESS INTERRUPTION;
REPLACEMENT COSTS ETC.) ARISING OUT OF OR IN CONNECTION WITH THE USE OR
INABILITY TO USE THE SERVICES PROVIDED HEREUNDER, OR RELATING TO THE
BLOCKING OF EMERGENCY/911 CALLS, WHETHER BASED ON WARRANTY, BREACH OF
CONTRACT, TORT (INCLUDING NEGLIGENCE OR BREACH OF STATUTORY DUTY),
PRODUCT LIABILITY, OR ANY OTHER LEGAL THEORY, REGARDLESS OF WHETHER OR
NOT THE PARTY THAT CAUSED THE DAMAGES HAD ACTUAL OR CONSTRUCTIVE
NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. ALPHA’S NETWORK SERVICES
SUPPLIER WILL NOT BE LIABLE FOR UNAUTHORIZED ACCESS TO OR ALTERATION,
THEFT OR DESTRUCTION OF BETA ’S DATA FILES, PROGRAMS, PROCEDURES OR
INFORMATION THROUGH ACCIDENT, FRAUDULENT MEANS OR DEVICES, OR ANY
OTHER METHOD, REGARDLESS OF WHETHER SUCH DAMAGE OCCURS AS A RESULT
OF ALPHA’S NETWORK SERVICES SUPPLIER’S NEGLIGENCE.
9. Term and Termination
The term of this Agreement will begin on the Effective Date and will continue for a period
of one (1) year, unless terminated earlier in accordance with this clause. This Agreement will
automatically renew for successive one (1) year periods thereafter unless at least thirty (30)
days prior to the end of the applicable term a Party provides written notice to the other of its
intention to terminate this Agreement. If one Party stops sending traffic, then it may request that
the other Party return its Security Deposit within twenty days, after deduction of amounts owed
to the Party that was holding the Security Deposit . Either Party shall have the right to terminate
this Agreement and/or suspend Services , effective immediately, if the other Party or one of its
end users engages in conduct that could reasonably subject the Party to any kind of liability, or
if either Party has reasonable doubt that it will be paid for Services . Notwithstanding anything
herein to the contrary, either Party may terminate or suspend this Agreement or provision of
Services hereunder effective immediately and without liability upon written notice to the other
Party if the other Party (i) becomes the subject of a voluntary petition in bankruptcy or any
voluntary proceeding relating to insolvency, receivership, liquidation, or composition for the
benefit of creditors; (ii) becomes the subject of an involuntary petition in bankruptcy or any
involuntary proceeding relating to insolvency, receivership, liquidation, or composition for the
benefit of creditors, if such petition or proceeding is not dismissed; or (iii) is adjudged a
bankrupt. If either Party fails to perform or breaches any material obligation of this Agreement,
then upon thirty (30) days’ prior written notice to the breaching Party specifying the default (the
Default Notice ), the non-breaching Party , at its option, may terminate or suspend this
Agreement, without liability, unless the breach specified in the Default Notice has been cured
within the thirty (30) day period.
10. Effect of Expiration or Termination
A. Upon termination or expiration of this Agreement, each Party shall pay the other
Party any unpaid amount that is due and payable up to the date of termination.
Expiration or termination of this Agreement shall not affect the rights of a Party accrued
up to the date of termination.
B. Upon expiration or termination of this Agreement, each Party (receiving Party )
shall immediately return to the other Party (Disclosing Party ) (or at the Disclosing Party ’s
request, destroy) all copies of the disclosing Party ’s Confidential Information in the
receiving Party ’s possession or control, and an officer of the receiving Party shall certify
to the disclosing Party in writing that the receiving Party has done so.
C. The rights and obligations of the Parties contained in Clauses pertaining to Fees
and Invoicing Ownership of Intellectual Property, Confidential Information,
Representations and Warranties, Indemnities and Limitations of Liability, Effect of
Expiration or Termination, and General Provisions shall survive the termination or
expiration of this Agreement.
11. General Provisions
A. Assignment. This Agreement shall bind the Parties and inure to the benefit of
each Party ’s permitted successors and assigns. Neither Party shall assign this
Agreement, in whole or in part, without the other Party ’s prior written consent. Any
attempt to assign this Agreement without consent as specified in this Clause shall be null
and void.
B. Governing Law
This Agreement shall be governed by, construed, and enforced in accordance with the
laws of the State of ______________.
12. Severability
The invalidity of any portion of this Agreement will not and shall not be deemed to affect
the validity of any other provision. If any provision of this Agreement is held to be invalid, the
parties agree that the remaining provisions shall be deemed to be in full force and effect as if
they had been executed by both parties subsequent to the expungement of the invalid provision.
13. Notices
Any notice provided for or concerning this Agreement shall be in writing and shall be
deemed sufficiently given when sent by certified or registered mail if sent to the respective
address of each party as set forth at the beginning of this Agreement.
14. Mandatory Arbitration
Any dispute under this Agreement shall be required to be resolved by binding arbitration
of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one
arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall
arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration
Association then in force and effect.
15. No Waiver
The failure of either party to this Agreement to insist upon the performance of any of the
terms and conditions of this Agreement, or the waiver of any breach of any of the terms and
conditions of this Agreement, shall not be construed as subsequently waiving any such terms
and conditions, but the same shall continue and remain in full force and effect as if no such
forbearance or waiver had occurred.
16. Modification of Agreement
Any modification of this Agreement or additional obligation assumed by either party in
connection with this Agreement shall be binding only if placed in writing and signed by each
party or an authorized representative of each party.
17. Assignment of Rights
The rights of each party under this Agreement are personal to that party and may not be
assigned or transferred to any other person, firm, corporation, or other entity without the prior,
express, and written consent of the other party.
18. In this Agreement, any reference to a party includes that party's heirs, executors,
administrators, successors and assigns, singular includes plural and masculine includes
feminine.
WITNESS our signatures as of the day and date first above stated.
_________________________ _______________________
(Name of Alpha) (Name of Beta)
By:______________________________ By:________________________________
_________________________________ ___________________________________
(P rinted name & Office in Corporation) (P rinted name & Office in Corporation
Attach Schedules 1 through 4
Attach Exhibit A